Survey: Employers to Push More Health Costs to Detroit Area Workers in 2015

News provided by

Dec 22, 2014, 09:37 ET

LIVONIA, Mich., Dec. 22, 2014 /PRNewswire/ -- A recent survey of southeast Michigan employers says the share of the health care costs is expected to increase for 89 percent of employees, even though only 2 percent of employers are considering dropping employer-sponsored health insurance in 2015.

The survey, conducted by the American Society of Employers (ASE) in cooperation with Priority Health, set out to understand how the Affordable Care Act (ACA) will impact employer health care planning. 98 percent of employers surveyed anticipate maintaining employee-sponsored coverage in 2015, and 85 percent expect to maintain that level of coverage in 2016 – with the remaining 15 percent currently undecided.

"The data shows for most employers, health benefits remain a key ingredient in their efforts to compete for and retain talent," said Mary Corrado, president and CEO of ASE. "We anticipate employers will continue to look for ways to control health care costs more seriously in part due to the ACA, and while employer-sponsored coverage is likely to continue, the majority of employees should expect to see changes in their health plans."

The survey outlined efforts by employers to control costs associated with health care. These cost containment measures include the following:

89 percent of those surveyed have or plan to increase the employee's share of the health care costs, compared to 83 percent in 2013. This will come in the form of higher deductibles, co-pays, and/or share of the health premium.
72 percent of those surveyed have or plan to implement changes to their prescription drug plans. This will involve the increased use of RX formularies where the uses of less costly drugs are incentivized by lower co-pays.
71 percent of participants have or plan to implement or expand wellness programs.
68 percent of those surveyed have or plan to implement or expand the use of high-deductible health plans.
50 percent of respondents have or are considering changing health insurance companies or administrators.

The survey, taken among 118 employers representing various industries and company sizes, also suggests the ACA will not have a significant negative impact on how employers staff their organizations. Most employers surveyed (89 percent) indicate they have not, and do not plan to, reduce the size of their workforce as a result of the ACA. Just nine percent of those surveyed indicated that they plan to limit or reduce hiring in the next 12 months and only seven percent will increase the use of temporary or contingent workers. Of the 118 participants, 74 percent had more than 50 full-time workers.

About the American Society of Employers
The American Society of Employers is a not-for-profit trade association servicing Michigan employers. Since 1902, member organizations have relied on ASE to be their single, cost-effective source for information and support on all matters affecting the employer-employee relationship. For over 100 years, ASE's principal function has been to provide people-management information and services. The purpose of these services is to help organizations grow their bottom lines by growing the effectiveness of their people. More information about the American Society of Employers is available at www.aseonline.org.

About Priority Health
Priority Health is an award-winning Michigan-based non-profit health plan nationally recognized for improving the health and lives of its members. It continues to lead the industry in engaging members in their health, delivering effective health and disease management programs, and working with physicians to improve health care outcomes and performance. Priority Health is one of only 20 health plans nationwide with wellness programs accredited by the National Committee for Quality Assurance, an organization that also rated our plans among the best health plans in the nation. Priority Health was also named the benchmark plan by the State of Michigan for all individual and group plans to model. Priority Health offers a broad portfolio of health benefit options for employer groups and individuals, including Medicare and Medicaid plans. Its network of health care providers features 95% of practicing physicians available in Michigan and more than 900,000 nationwide. For more information, visit www.priorityhealth.com

Logo - http://photos.prnewswire.com/prnh/20141222/165774LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/survey-employers-to-push-more-health-costs-to-detroit-area-workers-in-2015-300013081.html

SOURCE American Society of Employers